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<<I am looking for ways to reduce the tax burden. Right now, I don't deduct anything - which may be a mistake. I do use my PC occassionally for work, but enough to make a difference with the income I have? I don't know.

Mostly, I was wondering what the IRS says about contributing money to a pretax investment. Because I am contributing 12K this year to my 401k, am I allowed to open and contribute more to a SEP or solo 401k as well? If not - does anyone have any other suggestions for this income?

Thank you very much in advance!


Because you get hit with 15.3% self employment taxes in addition to income taxes on the profits from your self employment, any legitimate expenses you can claim on your Schedule c tax form are very valuable.

auto expences at thirty off cents/mile, office supplies and a wide array of others are easily claimed. Computers costs have special rules.

I'd get yourself a book that includes a discussion on business tax rules and study up, or you will get socked harder on taxes than necessary. And yes, you probably qualify for a SEP, which is easy to open. I'd probably funbd a Roth IRA first if you don't already do so.

Seattle Pioneer
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